BWA pushes through Monday's high
BorgWarner Inc. (BWA) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, BWA ended the month 9.8% higher at 35.30 after gaining $0.22 (0.63%) today, underperforming the S&P 500 (1.54%). Closing above Monday's high at 35.14, BorgWarner confirmed its breakout through the prior session high after trading up to $0.48 above it intraday.
Daily Candlestick Chart (BWA as at Jun 30, 2020):
Tuesday's trading range has been $1.20 (3.45%), that's slightly below the last trading month's daily average range of $1.38. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for BWA.
Unable to break through the key technical resistance level at 35.33 (R1), the share closed below it after spiking up to 35.62 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. When prices bounced off a significant resistance level the last time on June 16th, BWA lost -0.77% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 35.66 where further buy stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for BorgWarner. Out of 708 times, BWA closed higher 53.39% of the time on the next trading day after the market condition occurred.